Grid Dynamics Holdings, Inc. (GDYN) stock is surging 5.39% in pre-market trading on Friday, building on the previous day's 5.26% gain. The continued upward momentum comes after the company reported impressive third-quarter 2025 financial results and announced a new share repurchase program, boosting investor confidence in the digital transformation services provider.

Grid Dynamics reported Q3 revenues of $104.2 million, representing a robust 19.1% year-over-year increase and slightly beating analysts' expectations of $103.70 million. The company's adjusted earnings per share of $0.09 met Wall Street estimates. Notably, Grid Dynamics experienced strong growth in its Technology, Media, and Telecom (TMT) vertical, which surpassed the Finance sector to become the largest revenue contributor at 27.4%. The company's focus on innovative technologies is paying off, with AI-related revenue growing 10% sequentially and now accounting for over 25% of organic revenue.

Adding to the positive sentiment, Grid Dynamics' board of directors authorized a $50.0 million share repurchase program, signaling confidence in the company's financial position and commitment to enhancing shareholder value. Looking ahead, the company provided an optimistic outlook for Q4 2025, projecting revenues between $105.0 million and $107.0 million. Management also expressed confidence in improving margins by at least 300 basis points over the next 12 months. With a strong cash position of $338.6 million and continued growth in key sectors like AI and fintech, Grid Dynamics appears well-positioned for future success, contributing to the stock's impressive pre-market performance.